Celgene Corporation (CELG ) reported operating results for the
fourth quarter and full year of 2015. For the fourth quarter of 2015,
net product sales were $2,539 million compared to $2,055 million from
the same period in 2014, an increase of 24 percent. The net negative
impact of currency on net product sales was 1 percent. Fourth quarter
total revenue increased 23 percent to $2,563 million compared to $2,085
million in the fourth quarter of 2014. Adjusted net income for the
fourth quarter of 2015 increased 14 percent to $961 million compared to
$840 million in the fourth quarter of 2014. For the same period,
adjusted diluted earnings per share (EPS) increased 17 percent to $1.18
from $1.01 and includes a $0.07 impact from a $70 million milestone
achieved by OncoMed Pharmaceuticals, Inc. during the quarter.

Net product sales for the full year of 2015 were $9,161 million compared
to $7,564 million for the full year of 2014, an increase of 21 percent.
Total revenue for the full year of 2015 was $9,256 million compared to
$7,670 million for the previous year, an increase of 21 percent.
Adjusted net income increased 25 percent to $3,882 million compared to
the prior year. Adjusted diluted EPS increased 27 percent to $4.71 from
$3.71 for the full year of 2014.

Based on U.S. GAAP (Generally Accepted Accounting Principles), Celgene
reported net income of $561 million and diluted EPS of $0.69 for the
fourth quarter of 2015. For the fourth quarter of 2014, GAAP net income
was $614 million and diluted EPS was $0.74. Full year GAAP net income
for 2015 was $1,602 million and diluted EPS was $1.94. Full year GAAP
net income for 2014 was $2,000 million and diluted EPS was $2.39.

Unless otherwise stated, all comparisons are for the fourth quarter and
full year of 2015 compared to the fourth quarter and full year of 2014.
The adjusted operating expense categories presented below exclude
share-based employee compensation expense, in-process research and
development (IPR&D) impairments, upfront collaboration payments and
settlement of contingent obligations. Please see the attached
Reconciliation of GAAP to Adjusted Net Income for further information.

Net Product Sales Performance

--
REVLIMID(R) sales for the fourth quarter increased 18 percent
to $1,561 million and were driven by increased duration of therapy in
the U.S. and market share gains in newly diagnosed multiple myeloma
(NDMM) in Europe. Fourth quarter U.S. sales of $956 million and
international sales of $605 million increased 20 percent and 15
percent, respectively. Full year REVLIMID(R) sales were
$5,801 million, an increase of 16 percent.

--
POMALYST(R)/IMNOVID(R) sales for the fourth quarter
were $294 million. Fourth quarter U.S. sales of $170 million and
international sales of $124 million increased 29 percent and 77
percent, respectively. Full year POMALYST(R)/IMNOVID(R)
sales were $983 million. Sales were driven by increased market share
and duration gains.

--
ABRAXANE(R) sales for the fourth quarter were $270 million,
an increase of 14 percent. U.S. sales were $180 million and
international sales were $90 million, an increase of 5 percent and 41
percent, respectively. Full year ABRAXANE(R) sales were $967
million, an increase of 14 percent.

--
OTEZLA(R) sales in the fourth quarter were $183 million. Full
year OTEZLA(R) sales were $472 million. OTEZLA(R)
uptake and market share gains continued to accelerate in the fourth
quarter in the U.S. with increased contribution from early launch
countries in Europe.

--
In the fourth quarter, all other product sales, which include THALOMID(R),
ISTODAX(R), VIDAZA(R) and an authorized generic
version of VIDAZA(R) drug product in the U.S., were $231
million compared to $248 million in the fourth quarter of 2014. Full
year sales for these products were $938 million.

Research and Development (R&D)

Adjusted R&D expenses were $649 million for the fourth quarter of 2015
compared to $478 million for the fourth quarter of 2014. The fourth
quarter of 2015 included a $70 million milestone achieved by OncoMed
Pharmaceuticals, Inc. and also reflected increased clinical trial
activity for pipeline programs.

For the full year of 2015, adjusted R&D expenses were $2,044 million
compared to $1,651 million for the full year of 2014. Adjusted R&D
expenses included expenses related to advancing clinical trials and
expenses for collaboration-related payments to partners.

On a GAAP basis, R&D expenses were $777 million for the fourth quarter
of 2015 versus $585 million for the same period in 2014. The
year-over-year increase in R&D expenses on a GAAP basis was primarily
due to an increase in clinical trial activity. Full year of 2015 R&D
expenses were $3,697 million compared to $2,431 million for 2014. The
increase in R&D expenses on a GAAP basis was primarily due to upfront
payments for collaboration arrangements and an increase in clinical
trial activity, partially offset by an impairment recorded in the prior
year.

Selling, General, and Administrative (SG&A)

Adjusted SG&A expenses were $533 million for the fourth quarter of 2015
compared to $479 million for the fourth quarter of 2014. For the full
year of 2015, adjusted SG&A was $2,011 million versus $1,778 million in
2014. The increase was primarily due to launch expenses related to OTEZLA(R)
in the U.S. and Europe and the ongoing launch of REVLIMID(R)
for NDMM in Europe.

On a GAAP basis, SG&A expenses were $609 million for the fourth quarter
of 2015 compared to $544 million for the same period in 2014. Full year
SG&A expenses were $2,305 million for 2015 compared to $2,028 million
for 2014.

Cash, Cash Equivalents, and Marketable Securities

Operations generated cash flow of $2,483 million for 2015, a decrease of
12 percent year-over-year, primarily driven by an increase in upfront
collaboration payments. For the full year of 2015, Celgene purchased
approximately $3,257 million of shares. As of December 31, 2015, the
Company had $3,890 million remaining under the existing share repurchase
program. The Company ended the year with $6,552 million in cash and
marketable securities.

Product and Pipeline Updates

Hematology/Oncology

In December 2015, Celgene announced the settlement of litigations with
Natco Pharma Ltd. and its partners and affiliates, relating to certain
patents for REVLIMID(R). As part of the settlement, Celgene
agreed to provide Natco with a license to Celgenes patents required to
manufacture and sell an unlimited quantity of generic lenalidomide in
the U.S. beginning on January 31, 2026. In addition, Natco will receive
a volume-limited license to sell generic lenalidomide in the U.S.
commencing in March 2022, which is expected to be a mid-single-digit
percentage of the total lenalidomide capsules dispensed in the U.S.
during the first year of entry. The volume limitation is expected to
increase gradually each twelve months until March 2025. Natcos ability
to market generic lenalidomide in the U.S. will be contingent on its
obtaining approval of an Abbreviated New Drug Application.

In December, REVLIMID(R) was granted full marketing
authorization by Japans Ministry of Health, Labour and Welfare (MHLW)
for use in combination with dexamethasone as a treatment for patients
with NDMM. This marketing authorization expands upon the approval of
REVLIMID(R) in 2010 for the treatment of patients with relapsed
or refractory multiple myeloma (RRMM). Reimbursement discussions are
ongoing.

Celgene, in collaboration with partner AstraZeneca, announced the
initiation of the FUSION clinical development program with durvalumab in
hematologic malignancies. The initial trials combine durvalumab with
Celgene assets and novel compounds in RRMM, myelodysplastic syndromes
(MDS), acute myeloid leukemia (AML), non-Hodgkins lymphoma (NHL) and
chronic lymphocytic leukemia (CLL). Additional trials in NDMM and
diffuse large B-cell lymphoma (DLBCL) are expected to begin late in the
first quarter of 2016.

At the 57th American Society of Hematology Annual Meeting,
data on the combination of REVLIMID(R), bortezomib and low-dose
dexamethasone (RVd) in NDMM were presented. In the 471-patient study,
patients receiving RVd achieved a median progression free survival (PFS)
of 43 months compared to a median PFS of 30 months for patients who
received Rd alone (HR = 0.712, 96% CI, one-sided p=0.0018 (two-sided
p=0.0037)). The data also show that overall survival (OS) was improved
for RVd compared to Rd. Patients who received RVd had a median OS of 75
months compared to a median 64 months for patients receiving Rd
(HR=0.709, 96% CI, one-sided p=0.0125 (two-sided p=0.0250)). In January,
the National Comprehensive Cancer Network (NCCN) added the RVd
combination to the multiple myeloma guidelines as a category 1 preferred
treatment for both stem-cell transplant and non stem-cell transplant
candidates.

Subsequent to our October 2015 supplementary new drug application filed
with the U.S. Food and Drug Administration (FDA) for the expanded
indication of REVLIMID(R) for the treatment of non-del 5q lower
risk MDS, the FDA requested additional analyses and data for the
submission to further support the risk/benefit assessment of REVLIMID(R)
in this population. Based on the request, Celgene has decided to
withdraw the submission at this time. Celgene remains committed to
continued development in myeloid disease with ongoing trials in MDS and
AML with CC-486, luspatercept in collaboration with Acceleron and the
IDH platform in collaboration with Agios.

Data on the combination of ABRAXANE(R) with chemotherapy and
with anti-PD-L1 compounds in neoadjuvant and triple-negative breast
cancer were presented at the San Antonio Breast Cancer Symposium in
December. Data from the phase III ETNA cooperative group trial with
ABRAXANE(R) in patients with HER2-negative high-risk breast
cancer are expected to be presented in 2016. Celgene expects to submit
ABRAXANE(R) for early-stage breast cancer for regulatory
approval in Europe in 2016.

Inflammation & Immunology

In January 2016, Celgene announced that radiographic data from long-term
follow-up from the phase III POSTURE(R) trial of OTEZLA(R)
in ankylosing spondylitis showed a delay in disease progression. Based
on this result, Celgene is evaluating the next steps for OTEZLA(R)
in this disease. The data are expected to be presented at a major
medical congress in 2016.

Three year efficacy and safety data of OTEZLA(R) in patients
with psoriatic arthritis from the phase III PALACE 1 trial were
presented at the American College of Rheumatology meeting in November.
Among patients remaining in the study on treatment at 156 weeks, OTEZLA(R)
demonstrated sustained and clinically meaningful improvements in ACR 20,
ACR 50 and ACR 70 scores with a well-tolerated safety profile.

In the fourth quarter, a large phase III pivotal trial with GED-0301 in
active Crohns disease began enrollment. In addition, a phase II trial
with GED-0301 in ulcerative colitis also began enrollment. Data from the
registration-enabling endoscopic trial with GED-0301 is expected in
2017. Also in the quarter, the phase II STEPSTONE trial with ozanimod in
Crohns disease began enrollment.

The Group for Research and Assessment of Psoriasis and Psoriatic
Arthritis (GRAPPA) updated their Treatment Recommendations for Psoriatic
Arthritis in 2015. OTEZLA(R) was included for the first time in
these recommendations including for peripheral arthritis, enthesitis,
dactylitis, psoriasis and nail disease in psoriatic arthritis.

Business Update

Human Longevity, Inc. (HLI), a genomics and cell therapy-based
diagnostic and therapeutic company based in San Diego, agreed to
purchase Celgene Cellular Therapeutics (CCT) biobanking business known
as LifebankUSA and CCTs biomaterials portfolio of assets including
Biovance. In addition, in this transaction HLI will also acquire the
full rights to PSC-100, a placental stem cell program which CCT
partnered with HLI in August 2014. CCT remains committed to advancing a
pipeline of cell therapy and regenerative medicine products including
PDA-002 in clinical trials for diabetic foot ulcers and diabetic
peripheral neuropathy and PNK-007 (natural killer (NK) cells) in phase I
trials for AML and multiple myeloma.

Data from at Least 18 Phase III Trials Expected
from Mid-2016 Through Mid-2018

--
Total net product sales of $10.5 billion to $11.0 billion, an increase
of 17 percent year-over-year based on the mid-point of the range and
includes a negative impact from foreign exchange of approximately $120
million

--
REVLIMID(R) net sales in the range of $6.6 billion to $6.7
billion, an increase of 15 percent year-over-year based on the
mid-point of the range

--
Adjusted operating margin of approximately 53.5 percent after
investments across the entire organization, a 150 bps improvement over
2015. GAAP operating margin is expected to be approximately 42 percent

--
Adjusted diluted EPS in the range of $5.50 to $5.70, an increase of
approximately 19 percent year-over-year based on the mid-point of the
range. GAAP diluted EPS is expected to be in the range of $4.26 to
$4.64

--
Fully diluted share count for the full-year 2016 of approximately 825
million

--
For the first quarter of 2016, adjusted diluted EPS in the range of
$1.27 to $1.30. GAAP diluted EPS is expected to be in the range of
$0.98 to $1.05

Please see the attached Reconciliations of 2016 Projected GAAP to
Adjusted Net Income for further information.

Q4 and Full year 2015 Conference Call and Webcast Information

Celgene will host a conference call to discuss the fourth quarter and
full-year of 2015 operational and financial performance on Thursday,
January 28, 2016, at 9 a.m. ET. The conference call will be available by
webcast at www.celgene.com.
An audio replay of the call will be available from noon January 28,
2016, until midnight ET February 4, 2016. To access the replay in the
U.S., dial 1-855-859-2056; outside the U.S. dial 404-537-3406. The
participant passcode is 11177982.

About Celgene

Celgene Corporation, headquartered in Summit, New Jersey, is an
integrated global biopharmaceutical company engaged primarily in the
discovery, development and commercialization of innovative therapies for
the treatment of cancer and inflammatory diseases through
next-generation solutions in protein homeostasis, immuno-oncology,
epigenetics, immunology and neuro-inflammation. For more information,
please visit www.celgene.com.
Follow Celgene on Social Media: @Celgene,
Pinterest,
LinkedIn,
FaceBook
and YouTube.

About REVLIMID(R)

In the U.S., REVLIMID(R) (lenalidomide) in combination with
dexamethasone is indicated for the treatment of patients with multiple
myeloma. REVLIMID(R) is indicated for patients with
transfusion-dependent anemia due to Low- or Intermediate-1-risk
myelodysplastic syndromes (MDS) associated with a deletion 5q
cytogenetic abnormality with or without additional cytogenetic
abnormalities. REVLIMID(R) is approved in the U.S. for the
treatment of patients with mantle cell lymphoma (MCL) whose disease has
relapsed or progressed after two prior therapies, one of which included
bortezomib. Limitations of Use: REVLIMID(R) is not indicated
and is not recommended for the treatment of chronic lymphocytic leukemia
(CLL) outside of controlled clinical trials.

About ABRAXANE(R)

In the U.S., ABRAXANE(R) for Injectable Suspension (paclitaxel
protein-bound particles for injectable suspension) (albumin-bound) is
indicated for the treatment of breast cancer after failure of
combination chemotherapy for metastatic disease or relapse within six
months of adjuvant chemotherapy. Prior therapy should have included an
anthracycline unless clinically contraindicated. ABRAXANE(R) is
indicated for the first-line treatment of locally advanced or metastatic
non-small cell lung cancer, in combination with carboplatin, in patients
who are not candidates for curative surgery or radiation therapy.
ABRAXANE(R) is also indicated for the first-line treatment of
metastatic adenocarcinoma of the pancreas in combination with
gemcitabine.

About POMALYST(R)

In the U.S., POMALYST(R) (pomalidomide) is indicated for
patients with multiple myeloma who have received at least two prior
therapies including lenalidomide and a proteasome inhibitor and have
demonstrated disease progression on or within 60 days of completion of
the last therapy.

About OTEZLA(R)

In the U.S., OTEZLA(R) (apremilast) is indicated for the
treatment of adult patients with active psoriatic arthritis. OTEZLA(R)
is indicated in the U.S. for the treatment of patients with moderate to
severe plaque psoriasis who are candidates for phototherapy or systemic
therapy.

About VIDAZA(R)

In the U.S., VIDAZA(R) (azacitidine for injection) is indicated
for treatment of patients with the following French-American-British
(FAB) myelodysplastic syndrome subtypes: refractory anemia (RA) or
refractory anemia with ringed sideroblasts (RARS) (if accompanied by
neutropenia or thrombocytopenia or requiring transfusions), refractory
anemia with excess blasts (RAEB), refractory anemia with excess blasts
in transformation (RAEB-T), and chronic myelomonocytic leukemia (CMMoL).

Forward-Looking Statements

This press release contains forward-looking statements, which are
generally statements that are not historical facts. Forward-looking
statements can be identified by the words "expects," "anticipates,"
"believes," "intends," "estimates," "plans," "will," "outlook" and
similar expressions. Forward-looking statements are based on
managements current plans, estimates, assumptions and projections, and
speak only as of the date they are made. We undertake no
obligation to update any forward-looking statement in light of new
information or future events, except as otherwise required by law. Forward-looking
statements involve inherent risks and uncertainties, most of which are
difficult to predict and are generally beyond our control. Actual
results or outcomes may differ materially from those implied by the
forward-looking statements as a result of the impact of a number of
factors, many of which are discussed in more detail in our Annual Report
on Form 10-K and our other reports filed with the Securities and
Exchange Commission.

In addition to financial information prepared in accordance with U.S.
GAAP, this press release also contains adjusted financial measures that
we believe provide investors and management with supplemental
information relating to operating performance and trends that facilitate
comparisons between periods and with respect to projected information.
These adjusted financial measures are non-GAAP and should be
considered in addition to, but not as a substitute for, the information
prepared in accordance with U.S. GAAP. We typically exclude certain GAAP
items that management does not believe affect our basic operations and
that do not meet the GAAP definition of unusual or non-recurring items.
Other companies may define these measures in different ways. See
the attached Reconciliations of GAAP to Adjusted Net Income for
explanations of the amounts excluded and included to arrive at the
adjusted measures for the three-month and full year periods ended
December 31, 2015 and for the projected amounts for the three-month
period ending March 31, 2016 and the year ending December 31, 2016.

In addition to financial information prepared in accordance with U.S.
GAAP, this press release also contains adjusted financial measures that
we believe provide investors and management with supplemental
information relating to operating performance and trends that facilitate
comparisons between periods and with respect to projected information.
These adjusted financial measures are non-GAAP and should be considered
in addition to, but not as a substitute for, the information prepared in
accordance with U.S. GAAP. We typically exclude certain GAAP items that
management does not believe affect our basic operations and that do not
meet the GAAP definition of unusual or non-recurring items. Other
companies may define these measures in different ways.

Explanation of adjustments:
(1) Exclude share-based compensation expense totaling $150.2 for the
three-month period ended December 31, 2015 and $128.4 for the
three-month
period ended December 31, 2014. Exclude share-based compensation
expense totaling $576.6 for the twelve-month period ended December
31, 2015
and $447.6 for the twelve-month period ended December 31, 2014.
(2) Exclude upfront payment expense for research and development
collaboration arrangements.
(3) Exclude in-process research and development (IPR&D) impairment
recorded as a result of changes in estimated probability-weighted
cash flows
related to CC-292.
(4) Exclude settlement of a contingent obligation to make matching
contributions to a non-profit organization.
(5) Exclude amortization of intangible assets acquired in the
acquisitions of Pharmion Corp., Gloucester Pharmaceuticals, Inc.
(Gloucester), Abraxis
BioScience Inc. (Abraxis), Celgene Avilomics Research, Inc. (Avila),
and Quanticel Pharmaceuticals, Inc. (Quanticel).
(6) Exclude changes in the fair value of contingent consideration
related to the acquisitions of Gloucester, Abraxis, Avila, Nogra
Pharma Limited and
Quanticel.
(7) Exclude equity compensation and other fees and costs related to the
acquisitions of Receptos, Inc. and Quanticel.
(8) Exclude restructuring charges related to our relocation of certain
operations into our two Summit, NJ locations as well as costs
associated
with certain headcount reductions.
(9) Net income tax adjustments reflect the estimated tax effect of the
above adjustments and the impact of certain other non-operating tax
adjustments,
including the effects of acquisition related matters, adjustments to
the amount of unrecognized tax benefits, adjustments related to the
gain on the
sale of an equity investment and nonrecurring items connected with
the launch of new products.

(1) Our projected 2016 earnings do not include the effect of any
business combinations, collaboration agreements, asset acquisitions,
intangible asset impairments, or changes in the fair value of our
CVRs issued as part of the acquisition of Abraxis that may occur
after the day prior to the date of this press release.

(1) - Operational includes impact from both volume and price
(2) - Currency includes the impact from both foreign exchange rates
and hedging activities
(3) - OTEZLA(R) was approved in the U.S. for Psoriatic
Arthritis in March 2014 and approved in the U.S. for Psoriasis in
September 2014. OTEZLA(R) was approved for Psoriatic
Arthritis and Plaque Psoriasis in the EU in January 2015.

(1) - Operational includes impact from both volume and price
(2) - Currency includes the impact from both foreign exchange rates
and hedging activities
(3) - OTEZLA(R) was approved in the U.S. for Psoriatic
Arthritis in March 2014 and approved in the U.S. for Psoriasis in
September 2014. OTEZLA(R) was approved for Psoriatic
Arthritis and Plaque Psoriasis in the EU in January 2015.